More Employers Face Immigration Audits

About 1,000 U.S. employers will be audited for immigration violations as the federal government escalates pressure on business owners to resist hiring illegal immigrants.

Authorities said Thursday it was the largest employer crackdown ever; the government in July announced audits of 654 businesses.

Targeted firms will get a notice that federal agents intend to audit compliance with immigration laws and check the eligibility of workers. Violations could lead to fines, as well as civil or criminal charges.

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An American Apparel store in Chicago, seen in September when the firm said it would lay off about 1,500 employees in its Los Angeles factory following a probe by immigration authorities.
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None of the 1,000 companies was named. But each firm is "associated with critical infrastructure," officials said. That's the label the government applies to companies involving, for example, utilities, transportation or communications. Critical infrastructure entities are also seen as national security assets or potential targets for terrorists.

The Obama administration wants to use tough enforcement to win support in a broader campaign for a congressional overhaul of the U.S. immigration system next year. The White House would like to create a way for millions of illegal immigrants in the U.S. to win legal residency and citizenship.

"The second shoe has fallen," said Tom Roach, an immigration lawyer in Pasco, Wash., who represents farmers, landscapers and other employers of immigrant workers in Washington state. "The Obama administration is getting very serious about punishing employers."

Business groups say the Obama administration's increased focus on employer audits rather than workplace raids, which mostly target employees, is triggering higher costs.

"As reports of more and more workplace audits roll in, the typical story is of employers who have hired workers whose documents appear legitimate, on the books, paying federal and state taxes and Medicare and Social Security," said Craig J. Regelbrugge, of the American Nursery & Landscape Association.

"When companies undergo audits, there is disruption of normal business and a necessity to involve lawyers and consultants," he added. "The direct cost to a business can easily surpass tens of thousands of dollars."

The government chose the 1,000 targeted companies based on leads, officials said, and because the firms have a connection to public safety or national security.

Investigators are "finding and penalizing employers who believe they can unfairly get ahead by cultivating illegal workplaces," said John Morton, an assistant secretary at the Department of Homeland Security.

Of the 654 employers audited earlier this year, almost half of the cases were closed after issuing warnings or finding them in compliance, authorities said Thursday. Officials issued notices for 61 fines totaling more than $2.3 million. Fines were still being weighed in another 267 cases, the government said.

Among those audited this year were several California agricultural businesses.

"It caused tremendous havoc and emotional problems for farmers and staff," said Manuel Cunha, president of the Nisei Farmers League, an association that represents 1,100 growers in California and Arizona. "Farmers had known these workers' families for 10 or 15 years and had trained them to work in management, packing lines...Now we just kick them out the door."

In central California, where unemployment is hovering around 20%, farmers say they cannot find legal workers. "We try to hire people from the unemployment line. These people tell us they aren't trained and prefer a welfare check," said Mr. Cunha.

The surge in enforcement activity, coupled with lack of certainty about immigration reform, has led some U.S. farmers to consider moving their operations to Latin America, where land and labor is abundant.

Mr. Cunha, who is a citrus farmer in central California, said he was meeting with representatives of El Salvador, Honduras and Guatemala about farming opportunities there.

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